US Treasuries Hold Losses After Core CPI Tops Estimates on Inflation Worries

Treasuries fell as rising oil prices threatened to keep inflation at levels that could prompt the Federal Reserve to raise interest rates next year.

Yields were higher by three to five basis points, with benchmark oil prices up more than 3% as the US war on Iran continued to restrict Middle East supply. The US 30-year yield reached 5.02%, within two basis points of this year’s high, while two-year yields traded at about 4%. Bigger yield increases hit the UK and most other government bond markets.